Philip Reid Shawe "Phil" is an American business person, the Co-Founder and CEO of TransPerfect. He has overseen the day-to-day operations of the company since its founding in 1992. Phil has been named Entrepreneur of the Year for New York City by Ernst & Young and named to Crain’sNew York prestigious “40 Under 40 list” as one of the top young executives in New York.
Shawe began his career after graduating NYU with a position at Chemical Bank in New York; he did not see a future in it. When Chemical Banking Corp. merged with Manufacturers Hanover Corp. in 1991, Shawe quit to join Elting in a new business, a translation service. They were "betting..., on the globalization of business". From 1992 until 2018, Shawe had been the co-CEO of TransPerfect., and it has grown every quarter since its founding. Since May of 2018, he has been the sole CEO. In 2019, Shawe announced that TransPerfect will move the company's Manhattan headquarters from the iconic 3 Park Avenue, to Eyal Ofer'sNoMad Tower, with a 15 year lease.
TransPerfect Legal Challenge
Beginning in 2014, TransPerfect's two co-founders became entangled in a legal fight for control of the company. At issue was their partnership’s lack of an Exit Strategy. Instead of choosing to sell the shares directly, or to a third party buyer, the case ended up in New York State Supreme Court to force a complete sale of the company. The theory behind it was that with 50% ownership, no one had a company control. With that, there was a concern that the value of one's 50% ownership share would yield less than half the value of the actual shares. Elting's legal approach for relief from the legal system was viewed by Shawe as an attempt to use the courts to negotiate an exit policy. In 2014, Elting sought to remove Shawe as an officer of TransPerfect Translations International, Inc., and an injunction barring Shawe from conducting any managerial activity related to the business, and sought the dissolution of TransPerfect. Elting alleged that Shawe had created deadlock. New York StateSupreme Court Justice Melvin Schweitzer dismissed the case, suggesting the two needed to work it out privately and not seek remedy from a court. The suit was then taken to the Delaware Chancery where Elting made a similar complaint. Shawe alleged that Elting had breached her fiduciary duties by not moving ahead with certain business-related opportunities, such as leases, acquisitions, and suggested that Elting was seeking to divert funds necessary for growth for personal use. In August 2015, The Chancellor of the Delaware Chancery Court, Andre Bouchard, decided that the company should be forced to sell 100% of its shares in a public auction. Shortly after the case was begun, Shawe offered Elting more than $300 Million to buy her shares. Elting had suggested that perhaps she would buy Shawe's shares and alleged that Shawe was undervaluing the company and that her 50% stake was more valuable. Shawe alleged that Elting was never a buyer, and made a Texas Buy Sell offer, to which Elting rejected and continued to seek the court-ordered remedy. The auction was an attempt to ascertain the real market valuation of the company. In 2016, Chancellor Bouchard sanctioned Shawe for destroying evidence in the case. Bouchard, in his decision noted that no evidence was actually lost, but what he believed to be the attempt is what drove the $7.1 million dollar fine. Elting's attorneys at the firm Kramer Levin were also sanctioned for obstruction during a deposition during the case. The result was that Shawe bought Elting’s shares for $385m USD, which is estimated to be $287m in after-tax net proceeds. Shawe contended that after both parties paid their legal bills, Elting's share came to less than she would have made initially. In February 2018, after a lengthy and expensive legal process, Robert Pincus, the court-appointed custodian, determined that Shawe was the viable buyer in the auction and he became sole owner. Shawe has been outspoken on what he considers to be corruption in the Chancery Court, and has been committed to exposing the issues and effecting changes. Once he completed the purchase of Elting's shares and took ownership in the company, Shawe moved all of his corporate holdings from Delaware to Nevada.
Affiliations and Philanthropy
Shawe has guest lectured on Entrepreneurship at New York University and Columbia University and is a member of the Association for a Better New York. He had been a member of the board of directors of The Joyful Heart Foundation, a non-profit that worked in support of survivors of sexual assault, domestic violence, and child abuse. His philanthropic efforts include supporting over 25 causes by donating time or financial support, and he was recently named to The V Foundation for Cancer Research’s Circle of Honor. In 2018, Shawe sponsored ultramarathon runner Michele Graglia to run the Atacama Desert, for which Graglia was accepted into the Guinness Book. Shawe is sponsoring Graglia to run three more deserts - the Gobi, Sahara and Antarctica.
